WEDNESDAY, JULY 20, 1988
14
BROADCASTING INDUSTRY BETTER PLACED TO SERVE PUBLIC
PLACED
THE PASSAGE OF THE TELEVISION (AMENDMENT} BILL 1988 WILL ENABLE HONG KONG'S BROADCASTING INDUSTRY TO BE BETTER
ΤΟ CONTINUE TO SERVE THE COMMUNITY WELL ON THE ONE HAND WHILE HAVING THE OPPORTUNITY TO HAVE A MEANINGFUL RETURN FOR THEIR EFFORTS ON THE OTHER, THE HON STEPHEN CHEONG SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
THAT THE RECEIVED VARIOUS TO THE
SPEAKING IN SUPPORT OF THE BILL, MR CHEONG DISCLOSED LEGCO AD HOC GROUP FORMED TO STUDY THE BILL HAD REPRESENTATIONS FROM THE TWO INCUMBENT LICENSEES OVER PROVISIONS BUT FOUND THAT MANY OF THE SUGGESTED SOLUTIONS PERCEIVED PROBLEMS WERE AT ODDS WITH MOST OF THE BASIC PRINCIPLES CONSIDERED AT LENGTH BY THE BROADCASTING AUTHORITY.
"SUCH IMPORTANT ISSUES AS COMPANY STRUCTURE, FOREIGN OWNERSHIP, ETC. ETC. HAVE INDEED BEEN FULLY DELIBERATED BY THE BROADCASTING
AND AUTHORITY
THEIR RECOMMENDATIONS HAVE BEEN REFLECTED IN THE PROVISIONS OF THIS BILL," HE SAID.
+
"SAVE FOR SOMB MINOR AMENDMENTS THE GROUP LENT ITS FULL SUPPORT TO THIS BILL.
77
ONE MINOR AMENDMENT RELATED TO THE AD HOC GROUP RECOGNISING THAT PROVISIONS IN THE BILL RELATING TO THE PROHIBITION OF NOMINEE SHAREHOLDING UNINTENTIONALLY CARRIED A SIDE EFFECT PREVENTING A SHAREHOLDER OF THE LICENSEES FROM USING HIS SHARES
COLLATERAL SECURE LOANS OR CREDIT FACILITIES FROM LICENSED FINANCIAL
INSTITUTIONS.
AS
ΤΟ
FOR
THE GROUP WAS AWARE THAT IT WAS A COMMON BUSINESS PRACTICE THE CREDITOR BANK TO DEMAND PRIOR TRANSFER OF THE BORROWER'S SHARES TO ITS ASSOCIATED NOMINEE COMPANY.
+
THE PROHIBITION OF NOMINEE SHAREHOLDING FOR THE PURPOSE OF CREDIT GENERATION WOULD THUS ADVERSELY AFFECT THE NORMAL FLEXIBILITY ENJOYED BY SHAREHOLDERS AS WELL AS THE MARKETABILITY OF THE LICENSEES' SHARES ESPECIALLY IF THE LICENSEES WERE TO SEEK PUBLIC LISTING IN STOCK MARKET.
THE
TO REMOVE THIS ANOMALY, MR CHEONG MOVED A COMMITTEE STAGE AMENDMENT ON CLAUSE 6 AND CLAUSE 14 OF THE BILL.
ON THE LICENSEES' CONCERN THAT THE BILL WOULD DEPRIVE
PARTICIPATION THE OPPORTUNITY OF MINORITY
IN JOINT VENTURES OVERSEAS PARTNERS EVEN IF THESE PROJECTS COULD BE BENEFICIAL DEVELOPMENT OF THE BROADCASTING INDUSTRY IN HONG KONG, ADMINISTRATION REASSURED THE AD HOC GROUP THAT THEY OPEN MIND ON THIS ISSUE, MR CHEONG SAID.
THEM
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